Wyshoure-Ayalon Group Pursues Major Acquisitions in Israeli Finance Sector
Translated & summarized from Ice by baba
The Wyshoure-Ayalon group is in talks to acquire credit card company Cal, after a previous deal failed, and is also negotiating to take control of investment house Altshuler Shaham. The potential Cal acquisition follows the collapse of a deal with Union-Harel due to antitrust issues, while the Altshuler Shaham deal faces market skepticism and a significant stock drop. Despite these challenges, the group aims to become a major financial player, with CEO Yair Levinstein and Wyshoure Globaltech committing substantial investment to Altshuler Shaham.
The story in 6 lines · by baba
- Ayalon Insurance is considering acquiring credit card company Cal, following a previous deal's collapse.
- Wyshoure is in advanced negotiations to acquire control of the investment house Altshuler Shaham.
- The Competition Authority previously blocked the sale of Cal to Union-Harel due to antitrust concerns.
- Altshuler Shaham's stock has fallen 22% amid market doubts about the acquisition deal.
- CEO Yair Levinstein and Wyshoure Globaltech plan significant investments in Altshuler Shaham.
- These potential acquisitions aim to establish Wyshoure-Ayalon as a dominant financial group.
The Wyshoure-Ayalon group is making significant moves in Israel's financial landscape. Ayalon Insurance is reportedly considering the acquisition of the credit card company Cal, following the collapse of a previous deal with Union-Harel due to antitrust concerns. This potential acquisition comes as Wyshoure is in advanced negotiations to gain control of the investment house Altshuler Shaham, signaling the group's ambition to become a dominant three-pillar financial entity.
The interest in Cal emerged a month after Union's deal to buy it from Discount and International Banks fell apart over conditions set by the Competition Authority regarding Union's Super-Pharm holdings. Discount Bank is now exploring a stock exchange listing, with the Barak family expected to join the transaction.
Following these reports, Ayalon's stock rose by 3%, and Wyshoure's stock increased by 2%. However, the market has expressed skepticism regarding the Altshuler Shaham deal, with its stock plummeting 22% since the acquisition was first announced at a valuation of 1.8 billion shekels. Concerns about regulatory delays from the Capital Markets Authority, potential financing cost increases, and a possible wave of withdrawals by clients due to fund outflows have cast doubt on the deal's feasibility.
Altshuler Shaham Finances, in response, stated that their long-term strategy is unaffected by stock fluctuations. They emphasized their commitment to the company's growth, noting that CEO Yair Levinstein plans to invest approximately 180 million shekels of his own funds, alongside an expected 800 million shekels from Wyshoure Globaltech, to bolster the company.
The dual pursuit of Cal and Altshuler Shaham demonstrates Wyshoure-Ayalon's aggressive strategy to capitalize on market opportunities. Despite general market declines in investment house stocks and anticipated regulatory hurdles, the group's leadership appears determined to expand its operations and establish a significant presence in the Israeli financial market. If approved and adequately financed, these acquisitions could create a powerful and dominant financial institution, reshaping competition in Israel.
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